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What is an Investment ISA? Stocks and Shares ISA vs Cash ISA | Why I chose an Investment ISA
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- เผยแพร่เมื่อ 7 ก.ย. 2021
- What is an Investment/ Stocks and Shares ISA? Should you choose to open an investment ISA or a Cash ISA? An Investment ISA is simply a type of investment account in which the government lets you invest £20k each year, and any gains you make on the money in that account are not subject to Tax. You may be trying to decide whether to open up a Cash ISA or a stocks and Shares ISA. I personally made the decision to open an Investment ISA and have been so pleased with the returns I’ve seen since I started investing in my investment ISA. If I’d chose the alternative route and opened a cash ISA I would have actually lost money as the interest rate I would be getting would not be enough to keep up with inflation.
You can open an investment ISA with as little as £100 as a lump sum or £25 a month if you’re looking to set up a monthly direct debit. You’re then able to invest up to £20k a year totally tax free (at present).
In this video I include a couple of stats regarding the performance of investment ISA’s vs Cash ISA’s in the last ten years. These stats were taken from some research, which was carried out by AJ Bell and can be found here:
www.ajbell.co....
The stats I included in this video are:
£10,000 held in the average cash ISA over the last ten years would now be worth £9,772 after adjusting for inflation
A saver using their entire Cash ISA allowance each year since 2011 would have seen £127,320 turned into £124,857 in real terms
The same amount placed into the average global stock market fund would now be worth £196,079 in real terms
I personally have investment ISA’s with Barclays Smart Investor and Fidelity. I also have Junior Investment ISA’s with Hargreaves Lansdown, which I do not cover in this video. Do let me know if this is something you’d be interested in seeing a video on.
Wishing you all the best with your ISA, whichever decision you choose to make! Thank you for taking the time to watch!***FREE SHARES***
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DISCLAIMER
Any information given in this video is for entertainment purposes only, and does not act as legal or financial advice. Your financial decisions are your own responsibility, and if you do require advice please contact a qualified Financial Adviser or Financial Planner.
I hope you're all having a great week. As many of you know I'm a massive fan of investing in an Investment/ Stocks and Shares ISA.
Do you currently use an Investment ISA?! Let me know as always if you have any questions!
Let me know if there’s any specific videos you’d like to see!!
Nice video as always and wonderful advice. You really do pick interesting and relevant topics.
The amount you could invest in an ISA has rocketed in recent years, mainly thanks to George Osbourne. If you were lucky enough to max it out each year and invest in a simple FTSE 100 ETF (7.8% annualised total return) and reinvested the dividends you would be a millionaire in 22 years. And if you left the money there after that time you would receive interest of over 42k a year tax free.
The power of compound interest hey!! I’d absolutely love to max out my ISA allowance for the next few years (and my husbands too 😂) I can dream!!
Thanks a million for watching and all your support!!
Amazing again well done - really diverse topics!!
Thanks so much!!
Very easy to watch video, great job here! 😀
Thanks so much Shaun!!! I really appreciate it!! 😊😊😊
Well done!
Thanks a million Bess!!
Hi1 Just to let you know... I have a similar video already recorded but not published yet haha. So I didn't steal your idea! It's only similar though, not the same. Great video anyway! Congratulations!
Thank you so much! Great minds think alike 😊😊😊 Look forward to your video - I’m sure it’ll be awesome!
@@creatingbalancefinance do you have instagram? or how can I contact you?
@@anastasiiaargent I don’t have Instagram at the moment but I’m on Twitter @creatingba1ance or my email is financerach@gmail.com
Hope you’re really well!
My seat belt is well fastened.
Thanks a million for watching Stephen!! 💺😊
Great video, thanks! Stocks & Shares ISA question: is my yearly 20,000£ allowance defined by the amount of money I pay in or defined by the value of the stocks & shares I hold? For instance, if I pay in 19,000£ and then a month later the market value rises to 21,000£ because the stocks do well - am I still within the allowance or have I exceeded it? Many thanks!
Thanks so much for watching Alex. I believe you can put £20k a year in and anything you make isn’t taxed or counted as part of your allowance. So with your example of it rises to £21k you’re still within your allowance 😊👍 I hope that helps.
Wishing you all the best with your investments.
I moved my money and the kids savings into stock ISA's because the intrest for a cash ISA was a joke.
It really is!! I’m hoping to build up a good little sum for my kids as it would be lovely to be able to help them out when they’re 18 😊
Do you invest differently for your kids? Just out of interest!! I basically invest in the same things I would usually invest in 😊
Thanks a million for all your support!!
@@creatingbalancefinance just a sp500 tracker for the kids. Lets be honest its pretty difficult to beat the returns every year for 18 years.
Great plan!! 👍
Are you concerned about stocks and shares isa fees. I saw a video on here about Barclays taking around 6% in fees.
Thanks so much for watching Darren! Luckily the fees for the Barclays Smart Investor, which is the Stocks and Shares ISA I have are 0.2%.
The only thing is that’s there’s a minimum monthly cost of £4 so if you only had £800 invested there fees would be 6% pa as it would total £48 a year. I hope that helps 😊👍
Does fundsmith have an isa account they open for you?
Thanks for watching Liz. I have my ISA with Barclays and also one with Fidelity.
I hope you bought some crypto during the flash crash sale. Lol
What did you buy?!
@@creatingbalancefinance Just kept what i already have, 60% Ethereum and 40% Elrond.
I hope it’s going well Stephen 😊